Services Offshoring, American Jobs, and the Global Economy

Abstract

Americans are worried the economy is permanently shedding jobs and compressing wages, not only in blue-collar manufacturing but also now in white-collar services once assumed immune to foreign competition. The digitization of information and expanded bandwidth abroad are enabling companies to outsource to low-wage countries services ranging from routine call center and clerical activities to higher-value software programming, medical diagnosis, and research and analytical activities.